secondparty

Secondparty (often written as "second party") is a term used in commercial contracts and business to refer to the party identified as the other signatory in a transaction, the party that is not the first party. In many contracts, two parties are involved—first party and second party—though modern drafting often uses terms like buyer and seller, or counterparty.

Role and relationships: The first party is typically the party that issues the contract or obligation; the second party is the recipient or counterparty who is obligated to perform. The exact rights and duties of each party depend on the agreement. In some contexts, second party may be the customer or client, with the first party being the service provider.

Second-party data: In data and marketing, "second-party data" refers to data acquired directly from a trusted partner with consent, providing first-party-like accuracy without relying on a single company’s own data. It sits between first-party data (collected directly by a company) and third-party data (sourced from data aggregators).

Caveats: Because "second party" is a generic descriptor, its precise meaning varies by jurisdiction and contract. The term is often replaced by "counterparty" or named entities to avoid ambiguity.

See also: first party, third party, counterparty, second-party data.